Final answer:
Theory X views employees as inherently lazy and needing strict control, while Theory Y sees them as self-motivated and responsive to participative management. Efficiency wage theory supports Theory Y by suggesting better pay leads to higher productivity. These theories inform different management styles, incentives, and workplace practices.
Step-by-step explanation:
The concepts of Theory X and Theory Y relate to different management styles and assumptions about employee behavior. Theory X posits that employees are inherently lazy and must be coerced, controlled, and threatened with punishment to achieve organizational goals. This viewpoint suggests that workers avoid responsibility and lack ambition, requiring a tightly controlled, directive management style which relies on external control of employee behavior.
In contrast, Theory Y suggests that employees are not naturally lazy but instead are self-motivated and thrive on responsibility. This theory posits that given the right conditions, most people will want to do well at work, finding satisfaction in the process. A management style aligned with Theory Y offers a more participative approach, encouraging employees to work autonomously and be involved in goal-setting and problem-solving.
Efficiency wage theory complements Theory Y by suggesting that higher pay can lead to greater employee productivity, as workers have more motivation to perform well and remain with their current employer to avoid a potential decline in salary elsewhere. Moreover, by paying employees more, employers can reduce hiring and training expenses in the long run and maintain a motivated workforce.